B-116053, JUL 7, 1953

B-116053, JUL 7, 1953

PRECIS-UNAVAILABLE

THE SECRETARY OF THE AIR FORCE:

REFERENCE IS MADE TO LETTER DATED JULY 2, 1953, WITH ENCLOSURES, FROM FIRST LIEUTENANT NORMAN D. RONEMUS, USAF, CONTRACTING OFFICER, WOLTERS AIR FORCE BASE, TEXAS, REQUESTING A DECISION AS TO WHETHER AN ADJUSTMENT IS AUTHORIZED OF THE CONSIDERATION SPECIFIED IN CONTRACT NO. AF 41(617)-65 DATED JUNE 30, 1953, WITH FRONTIER MANUFACTURING COMPANY, IN VIEW OF AN ERROR ALLEGED BY THE COMPANY TO HAVE BEEN MADE IN ITS BID UPON WHICH SAID CONTRACT IS BASED.

SINCE AWARD OF THE CONTRACT HAS BEEN MADE, THE CONTRACTING OFFICER IS NOT ENTITLED TO A DECISION. SEE 28 COMP. GEN. 401. HOWEVER, SINCE A DECISION APPEARS URGENT, THE DECISION IS BEING RENDERED TO YOU.

BY INVITATION NO. 41-617-53-23, WOLTERS AIR FORCE BASE, TEXAS, REQUESTED BIDS - TO BE OPENED AT 4 P.M. ON JUNE 30, 1953 - FOR FURNISHING VARIOUS ITEMS OF STEEL STORAGE RACKS ON AN ALL OR NONE BASIS. ITEMS 1 THROUGH 5 CALLS FOR QUANTITIES OF VARIOUS SIZES OF DOUBLE FACE, CLOSED ENDS STEEL STORAGE RACKS WITH COMMON BACK. ITEMS 6 THROUGH 9 CALLS FOR VARIOUS SIZES OF SINGLE FACE, CLOSED ENDS STEEL STORAGE RACKS WITH BACK. IN RESPONSE TO THE INVITATION, FRONTIER MANUFACTURING COMPANY SUBMITTED A BID DATED JUNE 30, 1953, OFFERING TO FURNISH THE ITEMS FOR THE PRICES SET FORTH THEREIN.

THE CONTRACTING OFFICER REPORTS THAT SHORTLY AFTER THE OPENING OF THE BIDS, FRONTIER MANUFACTURING COMPANY ORALLY ALLEGED THAT AN ERROR HAD BEEN MADE IN ITS BID WITH RESPECT TO ITEMS 1 THROUGH 5 IN THAT THE UNIT PRICES QUOTED COVERED ONLY THE NUMBER OF RACKS SPECIFIED IN THE QUANTITY COLUMN WITH ONE-HALF OF THAT NUMBER OF BACKS. FOR INSTANCE, ITEM 1 CALLS FOR 124 UNITS CONSISTING OF 248 RACKS WITH 124 BACKS, WHEREAS THE BIDDER ALLEGES THAT THE BID WAS COMPUTED ON THE BASIS OF 124 RACKS AND 62 BACKS. THE CONTRACTING OFFICER FURTHER REPORTS THAT SHORTLY AFTER THE OPENING OF THE BIDS, THE BIDDER, IN SUPPORT OF ITS ALLEGATION, EXHIBITED FOR INSPECTION ITS WORKSHEETS. THE BIDDER ALLEGED THAT THE UNIT PRICES FOR ITEMS 1 THROUGH 5 SHOULD HAVE BEEN DOUBLE THE AMOUNT SHOWN IN THE BID.

THE RECORD SHOWS THAT THE UNIT PRICES QUOTED BY FRONTIER MANUFACTURING COMPANY, THE ALLEGED CORRECT PRICES AND THE PRICES QUOTED BY THE NEXT LOWEST BIDDER ARE AS FOLLOWS:

ITEM NO. FRONTIER MFG. CO. NEXT LOWEST BID

AS SUBMITTED AS CORRECTED

1 $56.72 $113.44 $123.21 2 76.54 153.08 161.87 3 32.96 65.92 73.45 4 42.23 84.46 94.99 5 33.53

67.06 78.54 6 28.42 31.55 7 27.99 30.99 8 23.86 27.50 9 23.43 26.94

BY LETTER DATED JUNE 30, 1953, SUBMITTED TO THE CONTRACTING OFFICER AT 9 A.M. ON JULY 1, FRONTIER MANUFACTURING COMPANY CONFIRMED ITS ALLEGATION OF ERROR AND SUBMITTED IN SUPPORT THEREOF ITS WORKSHEETS, TOGETHER WITH ITS CATALOG AND PRICE LISTS SHOWING THE BASIS ON WHICH ITS BID PRICES WERE COMPUTED. AN EXAMINATION OF THE EVIDENCE SUBMITTED SHOWS THAT THE PRICES QUOTED FOR ITEMS 1 THROUGH 5 WERE COMPUTED ON ONE HALF OF THE QUANTITY REQUIRED, AS ALLEGED. ALSO, THE PRICES QUOTED BY FRONTIER MANUFACTURING COMPANY FOR ITEMS 1 THROUGH 5 ARE OUT OF LINE WITH THE PRICES QUOTED BY THE OTHER BIDDERS FOR SUCH ITEMS, WHEREAS THE CORRECTED PRICES ARE IN LINE THEREWITH. THE PRICES QUOTED BY FRONTIER MANUFACTURING COMPANY FOR ITEMS 6 THROUGH 9 COVERING SINGLE FACE RACKS WITH BACKS, ON WHICH NO ERROR WAS MADE, ARE IN LINE WITH THE PRICES QUOTED BY THE OTHER BIDDERS.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, THERE APPEARS NO DOUBT THAT FRONTIER MANUFACTURING COMPANY, THROUGH MISTAKE INTERPRETED ITEMS 1 THROUGH 5 AS REQUIRING ONLY ONE-HALF OF THE QUANTITY CALLED FOR AND THAT EXCEPT FOR THE MISTAKE THE PRICES QUOTED WOULD HAVE BEEN DOUBLE THE AMOUNT SPECIFIED, AS ALLEGED. ACCORDINGLY, SINCE ERROR WAS ALLEGED PRIOR TO AWARD AND EVIDENCE WAS SUBMITTED BY THE COMPANY ESTABLISHING ITS INTENDED BID PRICES, CONTRACT NO. AF 41(617)-65 - WHICH WAS ACCEPTED SUBJECT TO CORRECTION OF THE CONSIDERATION SPECIFIED THEREIN IF AUTHORIZED BY THE GENERAL ACCOUNTING OFFICE - MAY BE AMENDED TO PROVIDE FOR THE CORRECTED UNIT PRICES FOR ITEMS 1 THROUGH 5 HEREINBEFORE SET FORTH. THE TOTAL AMOUNT OF THE CONTRACT AS SO AMENDED STILL BEING LOWER THAN THE NEXT LOW BID.

A REFERENCE TO THIS DECISION SHOULD BE MADE ON THE AMENDMENT TO THE CONTRACT.

THE COPY OF CONTRACT NO. AF 41(617)-65 SUBMITTED WITH THE LETTER OF JULY 2, IS FORWARDED HEREWITH. THE OTHER PAPERS ARE BEING RETAINED IN THIS OFFICE.